(08-28-2020, 11:05 AM)EricL Wrote: What catalyst do you see on the immediate horizon for this to end?
The Fed just said yesterday that they will support the markets to obtain 2%+ inflation.
COVID cases and hospitalizations are dropping again, Abbot came out with improved testing, and the health system continues to improve treatments for the disease.
I completely agree that valuations are absurd, but markets don't fall because of valuations.
That's exactly why we are in trouble because of the fed lol. The fed can't keep bailing us out and pumping up the market. And that's indeed what they are doing. Just look at all the insider selling to buys. Its at a 20-1 clip. And these are CEO selling.
More Business will be going bankrupt, restaurants wont survive with only 30% capacity, and retailers cant even get merchandise in. The Fed is making it seem like nothing is wring and things are rosey. But I got news for you. Its not all its cracked up to be. The bad is coming soon
In March the market was way over sold and they threw everything out but the kitchen sink. Now things are way over valued. You have to meet somewhere in the middle.
And ABT news is no big deal. Those are just $5 kits to see if you have covid-19 not a cure for it. It will be at least another year away or kore until we get a vaccine and I just have this feeling come fall it will all hit us like a brick again. I'm in the market to make money. But at these levels it's going to be very hard to make money on the long side. People are going to be reluctant to go out for a long time. In my hometown there are deaths from the covid-19 daily. This is not going way any time soon. Its like we all just forgot about how bad things can still get. Not over by a long shot.
And the biggest factor will be China and the election. Too much uncertainty and no one seems to care about the problems in the near future. And that normally spells disaster.
Sorry if I sound bearish.... I'm just stating my feeling. I just have that feeling like I did back in Feb when we crashed